ZNGA, GLUU Rally As Nevada Legalizes Online Gambling

Shares of social gaming company's Zynga and Glu Mobile are trading higher this morning after Nevada Gov. Brian Sandoval yesterday signed a measure legalizing online gambling in the state. Nevada's Assembly and Senate quickly passed the measure yesterday in what the AP described as an emergency measure intended to win approval ahead of pending similar move by New Jersey.

“This is an historic day for the great state of Nevada,” Sandoval said. “Today I sign into law the framework that will usher in the next frontier of gaming in Nevada.” He added that the measure is "critical to our state’s economy and ensures that we will continue to be the gold standard for gaming regulation.”

Nevada Gaming Control Board Chairman A.G. Burnett said the state already has about 20 applications from operators, equipment and software vendors seeking licenses for online gambling.

Keep in mind that while Nevada can legalize online gambling, the state has a population of less than 3 million people. The Las Vegas Review-Journalnotes that the bill has a provision that allows the state to enter compacts with other states - say, California - with lager populations.